United Kingdom gross domestic product grew 0.3% in the three months to September on the preceding quarter, following a contraction of 0.2% in the second quarter.
Tej Parikh, economist at the Institute of Directors, said: "Narrowly avoiding a recession is nothing to celebrate".
Business investment held steady in the third quarter but dropped by 0.6 per cent on the year, the ONS said.
The economy had been at threat of entering a recession - which is defined by two consecutive quarters of economic decline - after it contracted by 0.2% in the three months to June 2019.More news: Alabama scores most-watched game of season for CBS
"The fact that the Government will be celebrating 0.1% growth in the last six months is a sign of how low their hopes and expectations for our economy are". Sterling was up 0.7% against the euro (GBPEUR=X) to €1.1676 and up 0.8% against the dollar (GBPUSD=X) to $1.2879 at around 12.25pm after the latest data was released.
Britain's economy grew at the slowest annual rate in almost a decade in the three months to the end of September, as a global slowdown and Brexit worries hit business investment and manufacturing.
"Over the past year, Britain's growth has slowed to its lowest rate in nearly a decade - a disastrous performance by the Conservatives, whose main economic policy of Brexit is a promise of yet more slow growth".
Manufacturing output was flat for the period, as was overall production, following Brexit-driven volatility in the previous quarters. Government spending grew by 0.3%.More news: Logan Paul Loses to KSI in Controversial Boxing Rematch
Meanwhile the British shoppers grew more cautious about their spending in the three months to September despite enjoying real growth in their wages, raising concerns about the health of the economy in the run-up to Brexit.
GDP increased between July and September, according to the Office for National Statistics (ONS). Manufacturing failed to grow as the decline in many industries was offset by a rebound in auto production after the shutdown in April.
And despite rebounding growth, the ONS pointed to "signs" of a slowdown, as Britain readies to leave the European Union on January 31.
On an annual comparison, British GDP grew by 1.0 per cent in the third quarter from a year earlier - the weakest reading since the first three months of 2010.More news: Armistice Day: Two minutes' silence at Belfast Cenotaph